The FTSE 100 rallied on Monday, as we continue to see strength in the British stock markets. This was exacerbated by the fall in the British pound, which helps the export markets coming out of the United Kingdom, which of course the FTSE 100 is heavily laden with exporting companies. Because of this, I think that people that could be coming, as I think we could get a bit of a bounce in the British pound, but at the end of the day I think that the buyers will return. I suspect that the short-term target is probably 7500, but I also think that we will eventually break above that level continue to go much higher.
I believe in buying dips as they occur, as the 7300 level below looks offer a bit of a floor. I also recognize of the 7400 level might be supportive as well, and the possibility of several pullbacks on short term charts to build up enough momentum to break out above the important 7500 level is possible. A move above there send this market much higher, perhaps as high is 1000 of the next several months. I like the outlook for the British economy as export probably become cheap over the longer-term. Ultimately, volatility will continue to be a mainstay in the market, but I think that the buyers are going to be rewarded if they are patient enough to hang onto position. Adding on the dips continues to be one might very ways to look at the FTSE 100 longer-term, and I have no interest in selling, at least not anytime soon as the weakness in the currency markets continues to help. Longer-term, I suspect that the “buy-and-hold” crowd is still very much involved.
FTSE 100 Video 03.10.17
This article was originally posted on FX Empire